The jobs number was a blowout. It was strong across the board. |
The main factor behind the Canadian dollar appreciation is likely the expectation of tomorrow's Bank of Canada statement accompanying the widely expected hike. |
The overall tone of the report is pretty mediocre at this point. |
The strength in this component, which includes apparel and home entertainment goods, bodes well for Christmas retail sales. |
The U.S. economic releases were not particularly outside of expectations in any way. |
There were probably industrial prices that were helping support the Canadian dollar and also some of the data that we'll get at the end of the week could be on the strong side. |
There's very little direction. Everyone's tuning into (the payrolls figures) especially since the Fed has been talking about watching incoming data for guidance on how they're going to move in March. |
They probably will not explicitly (address it.) But there are several ways in which they can bring that up and talk about it in terms of global risk and the adjustment to international terms of trade, or...that inflation has been coming in lower than expected. |
This is a supportive report for Bank of Canada's 'modest' rate hike plans -- good growth, but lower imported costs. |
Today's number might represent some upside risk to that. |
We'll be watching the commodity prices again for the next little while in terms of direction for the Canadian dollar. We've gone through now C$1.14 and we're in a new range again. |
We're still expecting one more rate increase and I think this probably should not have too much of an impact overall. |
We've had quite a significant appreciation this week, and I think this is sort of a holding pattern before we get the Bank of Canada next week. |
While this is the largest monthly decline in nearly five years, the fall is entirely attributable to civilian aircraft, as non-defense aircraft orders returned to a normal pace, after a stunningly strong December. |
With the commodity prices easing, especially oil and natural gas, the expectation is that the Canadian dollar would actually come down somewhat. |